Standard Life’s bi-annual survey of nearly 300 UK financial advisers found that the most common question advisers were asked by clients close to retirement was how much money they needed to retire early (58%).
This was followed by nearly half of clients (48%) asking whether they should take tax-free cash as a lump sum.
Other top questions asked by clients included:
• How to pay less tax (38%)
• The impact of Brexit on finances (36%)
• Transferring defined benefit pensions (22%)
• Buying an annuity (16%)
Clients also asked about gifting to children and grandchildren tax efficiently during their lifetime (9%) and after death (14%).
Alastair Black, head of the Wrap platform proposition at Standard Life, said: “Clients close to retirement want to make the most of their hard-earned savings, so it’s unsurprising to see questions on early retirement and lump sums asked most frequently.
“An interesting dimension we are seeing in the research is the healthy proportion of clients seeking advice on inheritance tax and gifting to children and grandchildren.
“Advisers are telling us this is a growing trend as more clients have larger amounts of money to manage. The area of intergenerational wealth transfer is reasonably ‘young’ in the UK market, we predict it will become an increasingly important part of the advice and planning process.”
• Data for Standard Life’s Q4 Quest report was collected between 19 November and 2 December. Some 287 UK advisers took part in the survey.